Section  385.10 Applicability

 

This Part shall apply to requests by Regulated Financial Institutions for reconsideration of Material Supervisory Determinations.  The reconsideration process provides the management of these Regulated Financial Institutions with an informal procedure for review of Material Supervisory Determinations that they believe to be incorrect or based upon erroneous information. Enforcement actions and the appointment of a receiver are not subject to reconsideration under this Part.

 

Section  385.20 Definitions

 

"Assistant Commissioner" means the Assistant Commissioner of Banks and Real Estate, Bureau of Banks and Trust Companies.

 

"Commissioner" means the Commissioner of Banks and Real Estate or a person authorized by the Commissioner, the Office of Banks and Real Estate Act [20 ILCS 3205], or the Illinois Banking Act [205 ILCS 5].

 

"Chief Counsel" means the individual appointed by the Commissioner to serve as the Chief Counsel to the Office of Banks and Real Estate, Bureau of Banks and Trust Companies, or his or her delegated representative.

 

"Division Director" means the individual appointed by the Commissioner to directly manage and supervise the examination and regulation of specific Regulated Financial Institutions.  Division Directors include, but are not limited to, the Administrator of Pawnbroker Regulation; the Director of Commercial Bank Supervision-Springfield; the Director of Commercial Bank Supervision-Chicago; the Director of International Bank Supervision; and the Director of Specialized Activities Supervision.

 

"Material Supervisory Determinations" include, but are not limited to, material determinations related to UFIRS Ratings assigned to a State bank, ROCA/ROC Ratings assigned to a Foreign Banking Office or Foreign Banking Representative Office, UITRS Ratings assigned to a corporate fiduciary, and URSIT Ratings assigned to Information Technology; the adequacy of loan reserve provisions; loan classifications; and findings resulting from an examination of a pawnshop.

 

"ROCA/ROC Rating" means the rating assigned to a Foreign Banking Office and a Foreign Bank Representative Office, respectively, by the Commissioner based upon a composite evaluation of the following performance components: Risk Management; Operational Controls; Compliance; and Asset Quality.  The rating assigned to each individual performance component will be assigned a range of 1 through 5, with 1 being the highest possible rating and 5 being the lowest possible rating.

 

"Regulated Financial Institution" means a pawnshop, bank, corporate fiduciary, foreign banking office, foreign bank representative office, or a subsidiary, affiliate, parent company, or contractual service provider of the bank, corporate fiduciary, foreign banking office, or foreign bank representative office, subject to examination by the Commissioner.

 

"UFIRS Rating" means the rating assigned to a State bank by the Commissioner based upon a composite evaluation of the following six individual performance components of the Uniform Financial Institutions Rating System: Capital; Asset Quality; Management; Earnings; Liquidity; and Sensitivity to Market Risk.  The UFIRS Rating and the rating assigned to each individual performance component will be assigned a range of 1 through 5, with 1 being the highest possible rating and 5 being the lowest possible rating.

 

"UITRS Rating" means the rating assigned to a corporate fiduciary by the Commissioner based upon a composite evaluation of the following performance components of the Uniform Interagency Trust Rating System:  Management; Operations, Internal Controls and Auditing; Earnings; Compliance; and Asset Management.  The rating assigned to each individual performance component will be assigned a range of 1 through 5, with 1 being the highest possible rating and 5 being the lowest possible rating.

 

"URSIT Rating" means the rating assigned to a Regulated Financial Institution's information systems by the Commissioner based upon a risk evaluation of the following components of the Uniform Rating System for Information Technology:  Audit; Management; Development and Acquisition; and Support and Delivery.  The rating assigned to each individual performance component will be assigned a range of 1 through 5, with 1 being the highest possible rating and 5 being the lowest possible rating.

 

Section 385.30  Request for Reconsideration

 

A Regulated Financial Institution may submit a request for a reconsideration of a Material Supervisory Determination (request for reconsideration) with respect to any Material Supervisory Determination but it first should make a good faith effort to resolve the dispute with the Examiner in Charge either during the course of the examination or as soon as possible following completion of the examination.  Although an informal resolution of the dispute over the Material Supervisory Determination is encouraged, it is not a condition of filing a request for reconsideration.  A request for reconsideration shall be initiated no later than 45 calendar days from the receipt of a Final Report of Examination, unless the time is extended at the discretion of the Commissioner.  The board of directors of a bank, corporate fiduciary, or incorporated business entity, the local management of a foreign banking organization, or senior management in the case of an unincorporated business entity shall approve any request for reconsideration.  Any request for reconsideration shall be in writing and shall be made to the Office of Banks and Real Estate to the attention of the appropriate Division Director.

 

Section 385.40  Form of Request for Reconsideration

 

A written request for reconsideration shall:

 

a)         clearly state the Material Supervisory Determination submitted for reconsideration;

 

b)         provide all documents or other evidence and information that the Regulated Financial Institution believes will support the request for reconsideration; and

 

c)         clearly state the relief requested.

 

Section 385.50  Initial Reconsideration Review

 

a)         The appropriate Division Director shall consider the written request for reconsideration and all documents, evidence, and information submitted by the Regulated Financial Institution, provided that the documents, evidence, and information are limited to facts and circumstances that existed prior to or at the time of the Material Supervisory Determination.  The Division Director may also consider facts or circumstances that existed prior to or at the time of the Material Supervisory Determination but that may have been discovered or come to the attention of the Regulated Financial Institution after the Material Supervisory Determination.

 

b)         The appropriate Division Director shall also consider documents, evidence, and information submitted or prepared by the Division examination staff, including but not limited to the Final Report of Examination and any work papers associated with the Final Report of Examination.  The documents, evidence, and information that the Division Director may consider are limited to facts and circumstances that existed prior to or at the time of the Material Supervisory Determination.  The Division Director may consider facts or circumstances that existed prior to or at the time of the Material Supervisory Determination but that may have been discovered or come to the attention of the examination staff after the Material Supervisory Determination.

 

c)         The appropriate Division Director shall prepare and deliver to the Regulated Financial Institution a written disposition of initial review within 30 calendar days from receipt by the Office of Banks and Real Estate of a request for reconsideration. The written disposition of initial review may sustain, modify, or overturn any Material Supervisory Determination.

 

d)         If the Division Director conducted the examination that resulted in the Material Supervisory Determination that the Regulated Financial Institution is appealing, the initial review provided under this Section shall be waived.  The written disposition of initial review shall direct the Regulated Financial Institution to proceed to a final review as provided in Section 385.60 of this Part.

 

Section 385.60  Final Review

 

a)         If the Regulated Financial Institution disagrees with the Division Director’s written disposition of initial review or if the initial review is waived pursuant to Section 385.50(d), it may seek a final review before the Assistant Commissioner.

 

b)         Any request by a Regulated Financial Institution for final review of a Material Supervisory Determination shall be initiated no later than 15 calendar days from the receipt of the written disposition of initial review, unless the time is extended at the discretion of the Commissioner.  The Regulated Financial Institution’s board of directors, local management, or senior management, as applicable, shall approve any request for final review of a Material Supervisory Determination.  Any request for final review of a Material Supervisory Determination shall be in writing and shall be made to the Assistant Commissioner.

 

c)         The Assistant Commissioner may select a final review panel consisting of Division Directors and the Chief Counsel or their designated representatives.  In addition, the Assistant Commissioner may appoint others, including but not limited to examiners, attorneys, or outside experts, to sit on the final review panel.  The Assistant Commissioner may also choose to sit on the final review panel.  Neither the Division Director responsible for the written disposition of initial review nor his designated representative shall be selected as a member of the final review panel.  In addition, the Assistant Commissioner may not select as a member of the final review panel a Division Director who conducted the examination that is the basis for the Material Supervisory Determination being appealed.  If the Assistant Commissioner appoints a final review panel, the Assistant Commissioner shall notify the Regulated Financial Institution of the appointment and of the time frame within which the final review panel will make its recommendation and the Assistant Commissioner will act on it.

 

d)         The Assistant Commissioner, or the final review panel if one is appointed, shall review all documents, evidence, and information considered in connection with the written disposition of initial review. Additional evidence, documents, or information not previously submitted may be reviewed at the discretion of the Assistant Commissioner or final review panel, if one is appointed, provided that the documents, evidence, and information that may be considered are limited to facts and circumstances that existed prior to or at the time of the Material Supervisory Determination.  The provisions of this subsection are subject to the provisions of Section 48.3 of the Illinois Banking Act and Section 5-2 of the Corporate Fiduciary Act regarding confidential supervisory information.

 

e)         If the Assistant Commissioner appoints a final review panel, within 30 calendar days from the receipt by the Assistant Commissioner of a request for final review, that panel shall make a written recommendation to the Assistant Commissioner to sustain, modify, or overturn any Material Supervisory Determination. 

 

f)         Within 15 calendar days from the receipt of the written recommendation of the final review panel, the Assistant Commissioner shall provide written notification to the Regulated Financial Institution of his or her final decision related to the request for reconsideration.  The Assistant Commissioner may accept, reject, or modify the recommendation received from the final review panel.

 

g)         If the Assistant Commissioner does not appoint a final review panel, within 30 calendar days after his or her receipt of a request for final review, he or she shall provide written notification to the Regulated Financial Institution of his or her final decision to sustain, modify, or overturn the Material Supervisory Determination at issue.

 

Section 385.70  Effect of Filing a Request

 

A Material Supervisory Determination shall remain in effect while under review for reconsideration and until such time as it is either sustained, modified, or overturned.  Any request for reconsideration shall not prevent the Commissioner from taking any supervisory or enforcement action he or she deems appropriate or necessary under any statutory provision.